Call options indicate this year's market rally has flattened
UK equity managers using call options are in agreement this year's market rally has flattened, based on strike prices. Schroder Income Maximiser manager Thomas See says the strike price for receiving his target 3% premium (from the derivative strategy) over three months is in decline, having exceeded 200% of the stocks value for financial stocks in the first quarter. Elsewhere, Insight Equity Income Booster manager Richard Lloyd says he will be adjusting the options on his stocks for the first time in June and anticipates a significant mark-down in the cap he has to set for his options....
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